The Governor’s plan to expand taxpayer-subsidized health care hit another roadblock during the week of October 13-17 when Cook County Circuit Judge James R. Epstein renewed a previous judicial order banning state officials from using state money to pay for Governor Rod Blagojevich’s unilaterally expanded health care program.

The Legislature has rejected the Governor’s plan to expand state health care twice, but the Blagojevich Administration proceeded to enroll residents in a state-subsidized program. A lawsuit was filed in response and in April, Judge Epstein issued a preliminary injunction banning state officials from spending money on the program. Epstein’s decision was upheld in September by the Illinois Appellate Court and on October 15, he renewed his initial order.

News Detail

Senate Week in Review: October 13-17, 2008

10/18/2008

Senator Tim Bivins said that the judge’s order was not unexpected. Many people criticized the Governor’s decision to implement the program without legislative approval, questioning his authority to do so. Opponents had cautioned that enrolling people in the program, only to later remove them, may have serious repercussions – and it appears those concerns may be realized.

Also during the week of October 13-17, State Treasurer Alexi Giannoulias announced plans to deposit $1 billion in Illinois banks as a way to ensure local banks have the resources to attend to their community’s needs in today’s volatile economy. The goal is to boost bank depositors’ confidence that their money is safe.

Any state-chartered bank or national bank with an Illinois branch may request up to $25 million. A bank that chooses to participate will be required to put up collateral that is as much as 110 percent of the deposit; if the bank fails, the state can collect the collateral.

There may also be changes to the way the state oversees large construction projects. Officials say a new law may save state tax dollars by giving any building project that costs more than $20 million to one contractor, as opposed to multiple contractors – as is the current practice.

Not only is the new process expected to cost the state less, but it purportedly would be easier to correct problems and monitor the construction process. Currently, projects that total more than $250,000 must be bid to five separate contractors.

Some concerns have been expressed about the new proposal, specifically that general contractors could pit subcontractors against each other.